Binance native BNB coin's price has fallen to a yearly low of US$209 amid speculations that the exchange was propping its value. Changpeng Zhao, Binance CEO, said market forces determine BNB's price, denying rumors of market manipulation. The exchange token has faced major headwinds, with the U.S. SEC classifying it as a security in a lawsuit against Binance.
Binance Coin (BNB) is a cryptocurrency created by Binance, one of the world's largest cryptocurrency exchanges. Initially launched as an ERC-20 token on the Ethereum blockchain, BNB was later migrated to Binance's blockchain, Binance Chain.
BNB serves various purposes within the Binance ecosystem, such as reducing trading fees on the exchange, participating in token sales on the Binance Launchpad, and powering the Binance Smart Chain. This parallel blockchain supports smart contracts and decentralized applications.
Its utility and popularity have influenced its value, and the broader trends in the cryptocurrency market.
The latest data from the DeFi data tracking site, DeFi Llama, shows that currently, Binance Smart Chain has a US$2.86 billion total locked value (TVL). This figure is almost 87% below the 2021 all-time high of US$21 billion. While most of this TVL decrease can be attributed to the slump in Binance coin price, the rest points toward a decrease in network activity.
The decreased on-chain activity on BSC has lowered the demand for BNB, the native asset for the Layer 1 smart contract platform.
A high timeframe technical analysis of the BNB chart shows that the token has changed hands inside a broad trading range since the SEC filed a lawsuit. The top of this range lies at US$300, which has resulted in multiple rejections during this time. Binance coin price prediction would remain bearish as long as the price trades below the mid of this range, which lies at US$200.
If the bearish momentum sustains, the next target could be the US$185 level. This is the lowest point of the high timeframe accumulation range and maybe a strong support level.
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